High street retailers face winding-up petitions for unpaid rent

Valued business tenants like Matalan and Poundstretcher are under pressure from commercial landlords to pay rent during the pandemic. As a “last resort” winding up petitions have been issued by landlords upon retailers to seek unpaid rent.

We are leading experts specialising in insolvency proceedings. Our experienced City of London solicitors and barristers regularly assist companies facing a winding up petition; individuals served a statutory demand; or creditors owed money and considering issuing a winding up petition

Winding up Petition against Poundstretcher

Poundstretcher is facing separate claims from 3 landlords: L&C Investments, Sheet Anchor Investments and Black Office. The discount retailer run by businessman Aziz Tayub was struggling prior to the coronavirus pandemic on seeking funds to pay for unpaid rent. The accounts that were filed this month revealed the retailer had a pre-tax loss of £227,00 on more than £430 million of sales for the year to March 31.

A winding up petition was then served by the three landlords as a “last resort” for securing funds. However, even if the debt is repaid, creditors can continue the company’s winding up.

Matalan settles debt with its creditor

The high valued fashion retailer Matalan run by billionaire John Hargreaves and has more than 8000 staff across 230 stores was still affected by a writ from landlord Sheet Anchor Evolve but has settled the debt reported by The Daily Telegraph.

Matalan was seeking around £60 million last week to help it survive through the coronavirus pandemic after closing stores down to protect its staff. Billionaire John Hargreaves said he was considering any options to secure “short term funding” after elaborating that he has not faced “such difficult and unpredictable times” in its 35 years of trading.

Can winding up petitions be issued during Covid-19 pandemic?

Yes, winding-up petitions can still be issued. The Court has put a plan in place for dealing with winding up petitions over the coming months. In this unprecedented time, (especially with the government allowing time for creditors to repay debts) extra thought may be required as to whether a petition against a particular company is likely to achieve the petitioner’s goals.

If you are owed more than £750 by a company and the debt is undisputed (for example a judgment debt) or you are a company facing a winding-up petition, we can negotiate on your behalf and advise you through the insolvency and Companies Court process. Our Winding-Up Experts are able to give specialist legal information and advice to you.

Especially now, any company or individual contemplating a winding up petition for unpaid debts or an overdue invoice should seek legal advice (now more than ever) to avoid the costs consequences of prematurely commencing legal proceedings.

Specialist London Winding-up Petition Lawyers

We’re masters of insolvency dispute litigation. We are a specialist City of London law firm made up of Solicitors & Barristers. We’re based in the Middle Temple Inns of Court (next to the Royal Courts of Justice where the High Court and Central London County Courts are based).  We’re experts in dealing with matters surrounding insolvency in particular our team have unparalleled experience at both issuing and defending winding up petitions vigorously at the Royal Courts of Justice (Rolls Building), or the relevant High Court District Registry or County Court with jurisdiction under the Insolvency Rules. We provide a quick no cost initial telephone case review to establish whether or not we can help you; just call one of our team on 02071830529.

Want legal advice on the merits of your case?

Our simple enquiry form goes immediately to our litigation team in Middle Temple, London. Call us on +442071830529 from 9am-6pm.

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